Update for Agents and Brokers: New ... - NY State of...

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Update for Agents and Brokers: New York Health Benefit Exchange

March 22, 2013

Kelly Smith – Director, SHOP Exchange

Joe Muldoon - Director, Broker Relations

New York Health Benefit Exchange

Troy Oechsner - Deputy Superintendent for Health

New York State Department of Financial Services

• Provide an update on the Exchange, share new information and facilitate broker engagement

• Introduce a series of interactive webinars to prepare for your participation in the Exchange

• Encourage your use of the Exchange website as a tool for staying informed

www.HealthBenefitExchange.ny.gov

• Current Market State

• What is an Exchange

• Urban Institute Data - NEW

• New York SHOP Design - Wakely Consulting Analysis

• Preparing Brokers to Participate in the SHOP Exchange – Policy decisions

– Administrative overview

– Broker engagement

– Certification

– Ongoing education and communication

• Exchange Timeline

Agenda

New York’s Uninsured

• Today nearly 2.7 million New Yorkers under age 65, about 16 percent, do not have health insurance coverage

• Primarily workers and their families

• Uninsured people forego necessary care due to costs

• Taxpayers and the insured shoulder the burden of paying for the care of the uninsured

4 www.HealthBenefitExchange.ny.gov

What is an Exchange?

• Organized marketplace – Easily compare health plan options

– Makes available tax credits and cost-sharing subsidies

– Easily enroll in Qualified Health Plans (QHPs)

• Two programs

– “Individual Exchange“

– “Employer Exchange“ called the Small Business Health Options Program (SHOP)

Eligibility and Enrollment

• toll-free telephone hotline

• web portal for eligibility determination and enrollment

• ability to calculate the actual cost of coverage after individual tax credits and cost sharing reductions

• certify individuals as exempt from individual responsibility

Functions of the Exchange

Certify Qualified Health Plans (QHPs)

• Make available qualified health and dental plans to eligible individuals and employers

• Assign a quality rating and actuarial value to each QHP offered though the Exchange

• Require QHPs to offer Essential Health Benefits

• Ensure adequacy of plan networks

Total Exchange Enrollment

Individual Exchange

SHOP Exchange

N = 1 million people

Note: The results in this report assume small employer size is set to 100 employees, non-group and small group markets remain separate, and that

Basic Health Plan is not implemented, consistent with modeling assumptions for “Alternative 1” in the March 2012 report.

Source: Urban Institute, Characteristics of Nonelderly New Yorkers Likely to Enroll in the Health Insurance Exchanges Under the Affordable Care

Act, February 2013.

Enrollee Characteristics, by Income

SHOP Exchange

Under 138% FPL

138-200% FPL

200-300% FPL

300-400% FPL

Above 400% FPL

Individual Exchange

Source: Urban Institute, Characteristics of Nonelderly New Yorkers Likely to Enroll in the Health Insurance Exchanges Under the Affordable

Care Act, February 2013.

Enrollee Characteristics, by Age

Individual Exchange N = 560,000

SHOP Exchange N = 430,000

Act, February 2013.

Enrollee Characteristics, by Coverage Status

Individual Exchange N = 560,000

SHOP Exchange N = 430,000

Currently Insured

Uninsured

Act, February 2013.

Wakely Study – Value Propositions

• Employers and employees regard expanded choice as a key advantage to using the Exchange.

Choice

• The Exchange provides monthly billing to employers along with other administrative simplifications.

Administrative Simplicity

• The Exchange will be the exclusive place to access small business tax credits in 2014.

Tax Credits

• 76% of respondents believe this feature helps predict costs.

Defined Contribution

Key Policy Decisions Related to the SHOP Exchange

• Small Group Market Size − 2-50 in 2014 − Must raise to 100 by 2016

• Market Merger - Individual and Small Group Markets

− Not a federally required decision − NY will leave markets as is for 2014

• Benchmark Plan Selection − All QHPs have to offer the benchmark plan in each metal tier − Additional non-standard plans may be offered; all must

include Essential Health Benefits www.HealthBenefitExchange.ny.gov

Enrollees have choice of QHP coverage levels:

• Platinum – 90% actuarial value

• Gold – 80% actuarial value

• Silver – 70% actuarial value

• Bronze – 60% actuarial value

• Catastrophic plan available only for people under 30, or those with a financial or hardship exemption.

– Sold only in the individual Exchange

QHP Metal Tiers

Administrative Simplicity

• Exchange provides employers a single monthly bill

– Monthly bill will include relevant breakdown of employer/employee contribution due to each QHP (employers remain responsible for collecting premiums from employees).

• Exchange collects employer contributions and remits payment to insurers

• Employers using the Exchange may be eligible for Small Business Health Care Tax Credit

• Internal Revenue Code - 45R

• Exchange provides real-time estimate of credit at time of application for those who qualify

• Available to small business with fewer than 25 employees and average salary of $50k or less

• Maximum credit

– 50% of employer contribution

– 35% for tax-exempt (10 or fewer employees and average annual salary of $25k or less)

• Advised to work with tax advisor for tax information

Small Business Health Care Tax Credit

Employer Coverage Options

Employer Contribution Options

1) Select among QHPs offered by a specific carrier

2) Select specific QHPs offered by multiple carriers

3) Select a metal tier of coverage

4) Allow employees to select any Exchange QHP

1) Uncapped percentage (e.g., employer pays 55% of premium)

2) Capped percentage (e.g., employer pays 55% of premium, up to $300)

3) Defined dollar amount (e.g., employer pays $300/month)

Employer Coverage and Contribution Options

Customer Assistance and Enrollment Support

Online

— Through the Exchange portal (Broker and Employer portals)

— Process new applications and renewals

In-Person

— Brokers

• List of certified brokers will be available on the website

— In-Person Assistors/Navigators

Phone and Mail

— Call center capability in English, Spanish and TDD

— Language Line available for additional languages

— Written materials in several languages and Braille

• Brokers will be a primary distribution channel for small group enrollment in the SHOP

− 88% of NYS small group coverage currently sold through brokers

• Brokers also can choose to become certified to sell products in the individual Exchange

• Brokers will have the support of a dedicated online portal to facilitate applications and renewals

− Broker can also serve as employer proxy in employer portal

• Exchange will support brokers with a full customer service center

• Commissions will be paid directly from carriers

Broker Engagement

Getting Started: SHOP Education and Certification

• Curriculum delivered in cooperation with NYS Department of Financial Services

• Continuing Education credit eligible

• Satisfactory completion of curriculum and written exam required

• Execute broker agreement with the Exchange

• Curriculum available mid-summer 2013

Getting Started: Individual Exchange Education and Certification

• Offers an opportunity to gain additional expertise related to the individual market

• Curriculum focuses on public program eligibility

• Emphasis on individual tax credit qualification

• Curriculum available mid-summer 2013

www.HealthBenefitExchange.ny.gov 20

• Exchange will offer a series of web-based informational meetings for brokers

• Topics will include:

– Employer/broker portal overview

– Education and certification requirements

– Results of Health Plan Invitation • Participating carriers, QHPs, benefit summaries, rates

• Regular updates via website and email alerts

Next Steps for Broker Engagement

Executive Order Issued - April 2012

NY completes HHS Design Review - October 2012

NY submits Blueprint to HHS – November 2012

NY receives conditional certification from HHS to operate a state-based Exchange -December 2012

• HHS conducts design review – April 2013

• Rollout of broker training and certification – Summer 2013

• QHPs selected for participation in 2014 - July 2013

• IPA/Navigator Program begins – August 2013

• Customer Service Center opens for business – September 2013

• Advertising campaign begins – September 2013

• Applications accepted – October 2013

• Coverage starts – January 2014

Exchange Timeline

Broker Contacts

Joe Muldoon

jpm14@health.state.ny.us

Kelly Smith

kks03@health.state.ny.us

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